[Weds]: Marketing plans for the next few weeks will be touched from two directions, according to The Cattle Report. High grain and winter weather risk will push cattle owners to market cattle when ready. Futures prices selling for market premiums will encourage sellers to hold on to inventory… [Tues]: Afternoon National Slaughter Cattle Review / Boxed beef cutout values this afternoon were higher… In negotiated cash sales in Nebraska, the USDA reported 558 head sold dressed at $173-$174, and none sold live. In Iowa/Minnesota, 105 head were sold dressed at $171, and none were sold live. The monthly USDA reports saw 2020 beef production at 27.158 billion lbs. 2021 production was decreased by 70m lbs to 27.190 billion. That came mostly via a Q2 revision, said Brugler Marketing.. 2021 Q3 was also revised lower. USDA estimates Monday’s cattle slaughter at 119k head…

 

Farm Commodity Newsletter/Iowa Farmer Today

 

Wed 1/13/2021 8:19 AM

 

Cattle - Marketing plans for the next few weeks will be touched from two directions, according to The Cattle Report. High grain and winter weather risk will push cattle owners to market cattle when ready. Futures prices selling for market premiums will encourage sellers to hold on to inventory. Whichever way owners lean, they will find price help on the road as marketing numbers transition from ample supplies to fewer numbers in the coming weeks ahead.

 

Feeder cattle sold off sharply yesterday on the sharp spike in corn prices, said Joe Vaclavik of Standard Grain. “I wouldn’t be surprised if feeder cattle has a little more weakness in them today,” he said.

 

Meat demand in question

 

While restaurant and food service demand is likely to surge into the spring, the short-term demand tone remains weak, according to The Hightower Report.

 

Higher grain will impact all meat products and prices and are a sign of impeding inflation risk. They also provide generous incentives to farmers to ratchet up corn production this spring, according to The Cattle Report.

 

Report fires up grain markets

 

USDA has riled the corn and bean markets to levels not seen since 2013, said Ami Heesch of CHS Hedging. The corn market soars on smaller than expected supplies, dryness in Argentina and demand.

 

We are in fresh five- to six-year highs in all grain markets following yesterday’s report, said Joe Vaclavik of Standard Grain.

 

Tue 1/12/2021 4:31 PM

 

Boxed beef cutout values this afternoon were higher on Choice and sharply higher on Select on light to moderate demand and light offerings, USDA said.

 

Choice rose 1.45 to $209.14/cwt.

Select went up 2.35 to $198.08.

 

In negotiated cash sales in Nebraska, the USDA reported 558 head sold dressed at $173-$174, and none sold live. In Iowa/Minnesota, 105 head were sold dressed at $171, and none were sold live.

 

The monthly USDA reports saw 2020 beef production at 27.158 billion lbs. 2021 production was decreased by 70m lbs to 27.190 billion. That came mostly via a Q2 revision, said Brugler Marketing.. 2021 Q3 was also revised lower. USDA estimates Monday’s cattle slaughter at 119k head.

 

A fund trader is buying deferred contracts but cash news is weak, according to Stewart-Peterson. Futures contracts continue to fall as support levels of 135.00 refused to hold.

 

Restaurant demand expected to surge soon

 

The U.S. stock market rose slightly as investors take caution from tensions in Washington ahead of earnings reports on Friday and the swearing in of President Elect Joe Biden Jan. 20, reports CHS Hedging.

 

Restaurant and food service demand is expected to surge in spring, but tone for short-term demand is weak, said The Hightower Report. The limit up trade for corn helped spark aggressive selling that drove the cattle market to its lowest point since Nov. 20.

 

WASDE report bullish as grains surge

 

Today’s WASDE report was “bullish across the books,” said Daniel Trading’s John Payne. For corn, the big surprise was the projected yield per harvested acre in 2020/2021, of 172 bushels, down from November’s estimate of 175.8, adding support for the market.

 

Payne called it “the same deal” on soybeans, with less aggressive cuts, from a 50.7 yield estimate in November to 50.2. “Tremendous changes in the fundamental set up, sets us up for a fun year ahead, just given weather and demand,” Payne said.

 

Corn

 

Northern Argentina received notable rain over the weekend, but more dryness is expected. Meanwhile that country’s farmers continue their sales strike on corn despite their government’s lifting its export ban, said Total Farm Marketing.

 

USDA dropped US corn carryout to 1,552 but also dropped demand. We are not slowing demand yet and some are using a carryout now closer to 1,250, said ADM Investor Services.

 

Soybeans

 

Growing conditions are said to be very good in most of Brazil, but the southern regions are still drier than they would like, says Total Farm Marketing. Meanwhile, Brazil’s soybean harvest is underway but at a slow pace.

 

USDA raised China corn imports to 17.5.USDA also dropped US soybean carryout to 140 mil bu from 175. They raised exports 30 and crush 5. Some feel demand could be higher, said ADM Investor Services.

 

Wheat

 

WASDE estimates for all winter wheat.was 31.99 million, up 1.5 million acres total from a year ago. Increases in wheat and soybeans generally go hand in hand, said John Payne of Daniels Trading.

 

Wheat rallied on talk of Russia doubling their wheat export tax and fact Egypt passed on the wheat tender, according to ADM Investor services.

 

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